According to a report by the British newspaper The Guardian on September 29, U.S. President Donald Trump announced on September 28 that he would build a steel plant in Iowa that he described as “the largest steel plant in American history”. This provides Republicans with an opportunity to present employment issues to their voters; the state could play a role in determining who will control the U.S. Senate in the upcoming midterm elections.
"When interviewed by reporters, Trump stated: ‘We cannot call another country and say: "We want to build 2000 tanks, but we don't have steel, can you give us some?"’ He then provided an example: 'I thought, it's impossible. We called China and asked, "Can you give us some steel to make tanks?""
Trump said that the factory “has already begun construction” and will be located in eastern Iowa. It will be built by the foreign-funded steel manufacturer Mesabi Metallics. According to a White House official, the project is expected to cost about $15 billion. The factory is scheduled to start production in 2030, and it will produce 10 million tons of steel per year once fully operational.
It is reported that the factory will use iron ore from the company’s mines in Minnesota as its raw material; these mines accounted for approximately 60% of the United States’ iron ore production in the 20th century. Trump took this opportunity to criticize Tim Walz, the Democratic governor of Minnesota. He said, “They have one of the worst governors in history, a complete idiot, but their iron ore is indeed good. I think that’s more important.” The two had conflicts over mining issues, with the most recent incident occurring in August when Walz ordered the suspension of permits for mining projects near the Boundary Waters Wilderness.
According to a report by the Associated Press on the 29th, this factory establishment is actually an attempt to campaign for the upcoming mid-term elections in November. It also highlights the growing importance of Iowa for Republicans and Trump. Trump promised on Monday that he would travel to the state in the coming weeks to help with the campaigning. “We will hold a grand rally. We will all be there together,” said Trump.
However, The Guardian states that Mesabi Metallics is owned by the Indian-based Esa Group, and American taxpayers are paying for its expansion costs. The federal agency, the U.S. Export-Import Bank, will provide financing of up to $10 billion.
When asked whether building the factory requires global outsourcing, Mesabi Metallics Chairman Revanter Rua said that “most of the key materials” will come from the United States. However, he added that “some materials that are used in manufacturing and refining high-quality steel may need to be imported.”
Trump claimed that the project “is expected to create up to 6,000 new construction jobs, nearly 2,000 manufacturing and mining jobs, and add another $95 billion to the U.S. economy.”
Trump stated that the US steel industry is “strongly recovering,” and attributed this to the 50% tariffs he imposed on steel imports last year.
